Alaska ends Medicaid Fraud litigation with justice for its citizens

posted on:
May 16, 2014



In May 2013 Alaska’s attorney general announced an end to Average Wholesale Price (AWP) / Medicaid Fraud litigation. Alaska recovered more than $45 million for the State on behalf of its citizens and programs defrauded by pharmaceutical companies. The Attorney General’s Office filed the complaint against more than two dozen prescription drug manufacturers accused of overcharging the Alaska Medicaid program for medications. Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. was retained by Alaska’s attorney general to assist in representing the state in the litigation.

Beasley Allen has represented eight other states in AWP Medicaid Fraud litigation, and has settled in excess of $1.3 billion in claims. These AWP cases have made a tremendous positive impact on Medicaid agencies throughout the country. As a result of AWP litigation, the federal government and state Medicaid programs have recognized the gross abuse of price reporting by pharmaceutical manufacturers in the marketplace.

In addition to helping states recoup financial losses as a result of this fraud, the litigation is even more significant. “These cases have made a significant social change in the way our Medicaid program operates,” explains Beasley Allen Shareholder W. Daniel “Dee” Miles, III, head of the firm’s Consumer Fraud section. “The federal government has actually revamped its pricing formula going forward, and that’s a direct result of this litigation.”

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